The Greenhouse Gas Emissions Trading Scheme Auctioning Regulations 2021

Persons eligible to apply for admission to bid

16.—(1) The following persons are eligible to apply for admission to bid directly in auctions—

(a) an operator or an aircraft operator having an operator holding account or an aircraft operator holding account, bidding on its own account, including any parent undertaking, subsidiary undertaking or affiliated undertaking forming part of the same group as the operator or the aircraft operator;

(b) investment firms which—

(i) have permission under Part 4A of the Financial Services and Markets Act 2000(1) to carry on regulated activities relating to investment services and activities, bidding on their own account or on behalf of their clients; and

(ii) would require authorisation under Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments(2) (as that directive applied in the European Union immediately before IP completion day) if they had their head office in an EEA state;

(c) a credit institution—

(i) which has permission under Part 4A of the Financial Services and Markets Act 2000 to carry on the regulated activity of accepting deposits, bidding on their own account or on behalf of their clients; and

(ii) would require authorisation under Directive 2013/36/EU of the European Parliament and of the Council on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms (as that directive applied in the European Union immediately before IP completion day) if they had their head office in an EEA state;

(d) business groupings of persons listed in sub-paragraph (a) bidding on their own account and acting as an agent on behalf of their members;

(e) public bodies or state-owned entities of the United Kingdom that control any of the persons listed in sub-paragraph (a).

(2) Without prejudice to the exemption in paragraph 1(k) of Schedule 3 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001(3), persons covered by that exemption who comply with rules set out in regulation 42 are eligible to apply for admission to bid directly in the auctions either on their own account or on behalf of clients of their main business provided that they are established in the United Kingdom.

(3) Where the persons referred to in paragraph (1)(b) and (c) and paragraph (2) bid on behalf of their clients, they must ensure that those clients are themselves eligible to apply for admission to bid directly under paragraphs (1) or (2).

(4) Where the clients of the persons referred to in paragraph (3) are themselves bidding on behalf of their own clients, they must ensure that—

(a) those clients, and

(b) any direct or indirect clients of those clients down the chain bidding indirectly in the auctions,

are also eligible to apply for admission to bid directly under paragraphs (1) or (2).

(5) The following persons are not eligible to apply for admission to bid directly in auctions nor may they participate in auctions through one or more persons admitted to bid pursuant to regulation 17 and 18, whether for their own account or on behalf of any other person, where they fulfil their role with respect to the auctions in question—

(a) the auctioneer;

(b) the appointed auction platform including any clearing system and any settlement system connected to it;

(c) persons who are in a position to exercise, directly or indirectly, significant influence over the management of the persons under sub-paragraphs (a) and (b);

(d) persons working for persons under sub-paragraphs (a) and (b).

(6) The option made available pursuant to regulations 27 to 32 for the appointed auction platform, including any clearing system or settlement system connected to it, to accept payment, make delivery or take collateral, from a successor in title to a successful bidder may not undermine the application of this regulation, or regulations 17 to 19.

(1)

2000 c. 8. Part 4A was substituted for the original Part 4 by s. 11(2) of the Financial Services Act 2012 (c. 21).

(2)

OJ L173, 12.6.2014, p.349.

(3)

S.I.2001/544. Schedule 3 was inserted by S.I. 2018/1403.